Keen. D^V;. Ecott. TA, Main T i^rat MODERN FOREIGN EXCHANGE MONETARY SYSTEMS, INTRINSIC EQUIVALENTS AND COMMERCIAL RATES OF EXCHANGE OF ALL COUNTRIES AND THEIR RELA- TION TO UNITED STATES MONEY SECOND EDITION BY V. GONZALES FORMERLY FOREIGN TRADE AND BANKING ADVISOR OF THE NATIONAL ASSOCIATION OF MANUFACTURERS OF THE UNITED STATES 1920 C. S. HAMMOND & CO. 30 CHURCH STREET, NEW YORK ox ^. .0 COPYRIGHT, 1914-1920 BY V. GONZALES CONTENTS PAGE Introduction to Second Edition 5 Introduction to First Edition 13 Monetary Systems 17 Gold Standard Countries 19 Gold Exchange Standard Countries 21 Silver Standard Countries 25 Inconvertible Paper Money Countries 26 Basis of Exchange Intrinsic Equivalence 28 Intrinsic Equivalents and Commercial Rates of Exchange . . 35 Instruments of Exchange Cable Transfers Notes Specie Drafts 39 Exchange, in Foreign Trade 45 Arbitrage 58 Table of Moneys in Actual Use 61 Names of Some Coins Used at Times in Business 68 Names of Some Quantities of Money Referred to in Trade . . 68 Value of the Gramme of Gold 69 Coining Value of the Ounce of Fine Gold 70 Par Value of the American Dollar 70 Coming Value of the Ounce of Fine Silver 71 Time Distances 71 Monetary Units Intrinsic Equivalents ........ 78 Commercial Rates of Exchange 85 Exchange Quotations 95 Colonies and Possessions 99 Intrinsic Value of Subsidiary Silver Currency 103 Exchange, a decisive factor in trade 109 3 INTRODUCTION TO THE SECOND EDITION The first edition of this book appeared a few months before the European War disturbed the entire financial structure of the world. Since then very few technical changes have been made in the monetary systems. Only four countries, China, Colombia, Salvador, and Turkey, have put in operation new laws relating to money. In this edition they are mentioned accordingly. During the war several countries have issued different forms of subsidiary money to cover local needs of circula- tion. Iron, zinc, and aluminum coins have been issued in some of the belligerent and even in some neutral coun- tries. Also other tokens printed on paper and cloth. All have more or less served their purpose for the time being and are supposed to be redeemed hi current money as soon as conditions become normal. They have not changed in the least the technical condi- tions of money in any country nor have they had any influence on their foreign exchanges. They will serve more as a good supply of specimens for numismatists and collectors of curiosities. The great change, however, that the world has expe- rienced is not so much technical as practical. Gold, which until the first shot was fired, was the automatic regulator 5 6 Mcdzn., Foreign Exchange of exchanges, has almost disappeared from circulation and being no longer free to move from one country to the other, has ceased to act as the basis for the adjustment of international balances. Nothing has been devised yet to take its place and exchanges between countries have been left entirely to actual supply and demand, except where Government interference has artificially governed ad- justment hi the transfer of values. Until a few months ago, exchange between the United States and Great Britain was pegged at an arbitrary rate of roughly $4.76 per 1 against a mint par of $4.86656 and gold points of $4 . 82 and $4 . 9065. This was done by means of permanent purchase of drafts at that price, the necessary funds for so doing being provided by loans made to the United Kingdom by the Government and the people of the United States. That pegging caused almost all the excess of London Exchange all over the world to be dumped into the United States, creating adverse balances against this country, which might be termed "artificial balances" because trade balances were actually in favor of the United States, as happened in Spain, Scandinavia, and other countries. Gold not being allowed to move except under the most stringent regulations, the adjust- ment of natural balances of trade against the United States was exceedingly cumbersome, and caused the un- pleasant feeling of an American dollar at a discount hi several countries. The moment exchange was left free again it commenced to drop reaching at this writing about $3.75 per pound sterling. Introduction to Second Edition 7 No one knows what the world will be able to do in the matter of either reestablishing gold to its former position or substituting for it some other form of international adjusting medium universally accepted. Until then, ex- changes all over the world will be disturbed with nothing certain for the future and subject only to supply and de- mand. The immense amount of uncovered paper money issued and outstanding everywhere, the enormous war debts, the almost inconceivable sums needed to restore the dam- age and to set into normal motion the wheels of production and commerce, and the claim of gold miners for a higher price because they cannot produce it for what they obtain, are factors to be considered in deciding what will be done to keep up the parity of all moneys. But whatever the world adopts as international ex- change adjuster, and however it is put into operation, it is probable that the former relation between the different moneys will be maintained. In every country its domestic commerce will be regulated in its own money, as it is and as it was. The pound sterling will be made probably theoretically equivalent to $4.86656 and the same will apply to the moneys of all other countries in relation to American currency and all others. No mention is made of the money of the new political entities as they are not yet finally determined. Czecho- slovakia considers the adoption of a new unit called the "sokol" to be equivalent to the French franc. The coun- try, whose exact boundaries have not yet been fixed, was 8 Modem Foreign Exchange flooded with Austrian paper money of little actual value, and the people were used to count, think and adjust their prices in Austrian kronen. It assumed as liability of the State the Austrian paper in circulation, had the notes stamped and then exchanged them for its own notes issued in kronen also. In Poland, formed by the segregation of former Russian, German, and Austrian territories, there are three different moneys circulating roubles, marks and kronen. Some tune will pass before an actual uniform unit can be adopted. Of the different factions of Russia, only the Ukranians have adopted a new unit, the Hryvnia (pronounced crivnia) equivalent to two roubles. This may be definite, or not. It is therefore preferable to wait until this matter is finally settled before putting it on record. Austria and Hungary were mentioned in the first edition as if one country. No change has been made in the present edition as up to this moment no definite news is available as to what the money of the different fractions of the former dual monarchy will be. Jugo Slavia or more properly the " Kingdom of Serbs, Croats and Slovenes " as it is officially called and which is supposed to comprise Serbia, Montenegro and some ter- ritories formerly under the jurisdiction of Austria-Hun- gary, is still divided in the matter of currency, Serbia retaining its Dinar, Montenegro its perpen and Croatia, Bosnia and Herzegovina still using Austrian kronen. Another change of importance affecting exchanges has been the advance in the price of silver. When war was Introduction to Second Edition 9 declared, the average price in New York for the preceding five years was around 55 cents per ounce of pure metal. This is why, in the first edition of this book, the value of money in silver standard countries was figured on the basis of 55 cents the ounce, although it was clearly explained that such basis was constantly subject to fluctuations. During the first year of the war it dropped to an aver- age of 51 7/8 cents (for 1915). But thereafter silver ad- vanced almost constantly until it reached about $1.15 at the end of 1917. The demand, especially for India and the Far East, was enormous and the American Govern- ment felt itself more or less constrained to come to the rescue in filling the demand that was creating chaotic conditions in the Far Eastern trade at a time when its products were badly needed and could be acquired only with actual silver, unobtainable in enough quantity at its places of production. The American Government, there- fore, passed a law authorizing the smelting of up to 350 million dollars out of the stock held in the Treasury, in trust for the redemption of silver certificates, recalling an equal amount of these. The Law of April 23, 1918, au- thorized the sale of this silver at not less than one dollar per ounce and directed the purchase of an even amount at the fixed price of one dollar as and when possible, prac- tically fixing for some tune the minimum price of silver at $1.00 per ounce fine. In this edition the value of money in silver standard countries has been figured at this price, which, of course, is also subject to fluctuation. Another disturbance caused by the advance of the price 10 Modern Foreign Exchange of silver was the overvaluation of subsidiary coins in countries under gold, or gold exchange standard. India gives a striking example of this. The Indian silver rupee weighs 11.664 grammes 916 2/3 fine or 10.6920 grammes fine which is .343747 of one ounce pure silver. At $1.00 the ounce it is intrinsically worth $.343747 against the guar- anteed gold exchange value of the rupee of 16 pence or 1/15 of $1 or $0.32444. The subsidiary coin then became more valuable than the standard guaranteed value, thus depreciating gold exchange. Because of this and the depreciation of British exchange the Indian Government has been obliged to advance the value of the rupee successively to 17, 18, 20, 22, 24 and 26 pence and it may still be further advanced if silver goes higher and British exchange lower. Both have caused the dislocation of Indian exchange in the United States. At this writing with silver at $1.32 per ounce, the silver rupee is intrinsically worth .45 3/8 cents. At $3.75 per pound sterling the 26 pence guaran- teed are worth only 40 5/8 cents and actual rate on the market is 45 .1/2 cents. In Peru, the silver "sol" subsiduary of the Gold Unit the Pound, weighs 25 grammes of silver, 900 fine or 22 ^ grammes of pure silver .7234 of one ounce and is worth, at $1 per ounce, $.7234 against $.48 2/3 supposed to rep- resent as the 10th part of the Peruvian Gold Pound. As soon as the intrinsic value exceeded the representative value the silver coins disappeared from circulation and the Government was obliged to coin nickel as subsidiary, Introduction to Second Edition 11 retaining its gold standard under the restrictions estab- lished at the outbreak of the war. Not every country faced the same trouble on this ac- count. In some, like Salvador, on a silver standard, the conversion or redemption of notes for silver had been suspended until 12 months after the signing of peace- exchange maintained at an artificial rate far above what it should be in accordance with the gold price of silver until last September when it adopted the Gold Standard changing the name of its unit to "Colon " (.7524 grammes of fine gold equivalent to 50 cents American gold). In others, silver disappeared entirely from circulation and was substituted with paper money. Mexico reduced the weight of its silver coin in December, 1918, and again in November, 1919. A list of the countries where subsidiary silver money has passed the value of the standard, with silver at $1 per ounce, is given in this book, mentioning the proportion of an ounce of silver contained in each. In the United States where the whole dollars (silver) have a gold parity of $1.2929 per ounce and fractional currency of $1.38239 the problem of overvaluation is just presenting itself. If the price of silver advances beyond the melting point it would be difficult to keep the coins in circulation. With perhaps only the U. S. A. as excep- tion the entire world is practically on a flat paper money basis, relation with gold and silver being only theoretical. In every country conditions of foreign exchanges are so disturbed and uncertain that it would be idle to describe 12 Modern Foreign Evchange them in detail as they may change at any moment. It is therefore preferable to describe only the essential features of their money according to their monetary laws hi the understanding that it is all only nominal for the present. The author has been delaying the publication of this second edition, waiting for something definite to figure on. But the first edition is exhausted and there is a very large demand for something more up-to-date. Thence the reason for publishing this book at this time. V. GONZALES. New York, December, 1919. INTRODUCTION TO THE FIRST EDITION Knowledge of the money and exchange of all countries is becoming more and more necessary because of the rapid expansion of international commercial relations. Years ago some three or four European cities alone were the centers of international monetary transactions and these absorbed the entire volume of trade clearings from all countries. During the last ten or fifteen years NEW YORK has become a very important market for exchange and it is likely that some other cities of the United States will soon reach the same position. The development of our foreign trade makes it desirable that we should have a comprehensive grasp of foreign exchange as each domestic commercial center strives for as much direct and independent business as it can possibly get. Foreign trade competition has become so keen all over the world that, at present, it is not enough to know the cost of goods and incidentals only. To sustain an in- telligent and successful struggle it is also necessary to know, thoroughly, all about other people's money and its relation to our money. Of late it has been found very convenient to quote and fix prices in the money of some purchasing countries. 13 14 Modern Foreign Exchange This can be done to advantage with those under stable monetary conditions. FOREIGN EXCHANGE is no longer a matter of concern to exchange dealers alone. It is a subject of wide interest to all who have, or wish for, foreign business. All treatises on foreign exchange published up to the present tune deal with the subject scientifically and are devoted more to the study of economic principles and history than to the description of money and exchange in reference to international trade. Facts, as they stand, are summarized and condensed in this booklet in a simple and comprehensive form, per- mitting even those without any special preparation to readily understand them. It shows not only the intrinsic equivalents of all moneys with American money and vice versa, but also the maximum and minimum possible rates of exchange with all countries, and affords in a condensed form, all the knowledge that business men need at hand for their foreign commercial transactions. V. G. New York, January, 1914. NOTES To avoid confusion all weights are given in "grammes" because it is the standard unit of weight in use all over the world. All reference to the "grain" has been omitted. One gramme is equivalent to 15.43235639 grains. The Act of July 28, 1856, fixed the equivalent as 15.432. To know the number of "grains" contained in any number of "grammes," multiply these by 15.432. To know the number of "grammes" in any given number of "grains," divide by 15.432. Introduction to First Edition 15 An ounce contains 480 grains. Therefore each ounce contains (l543235639)' 31 - 10349552 grammes, roughly given as 31.104 grammes. Five decimals are given for the sake of mathematical exactness, but in business only two are used. When third decimal is 5 or more, add 1 to the second. When using three decimals follow the same method. For instance, the equivalent of the Latin Union franc is given as .19295, as the fourth decimal is 9 the third is increased to 3, and is often men- tioned as .193. Gold is quoted in London on the basis of the Ounce Standard which is .91666 fine (11/12), in the United States is quoted on the basis of the ounce fine (1000/1000). 1 ounce standard = .916.666 fine. 1 ounce fine = 1.090909 standard. Silver is quoted in London on the basis of the Ounce Standard which is .925 fine (37/40), in the United States it is quoted on the basis of the ounce fine (1000/1000). 1 ounce standard = .925000 fine. I ounce fine = 1.081081 standard. MODERN FOREIGN EXCHANGE MONETARY SYSTEMS There are four standards of money which constitute the basis of the different monetary systems of the civilized world. They are: 1. GOLD STANDARD wherein GOLD is the only full legal tender, other forms of money being maintained at a parity, with or without Government guarantee, by then- permanent conversion into gold and by means of the limitation of their supply. 2. GOLD EXCHANGE STANDARD wherein gold and other forms of money are legal tender, the conversion of the latter into gold being guaranteed directly by the Government by means of a conversion fund or otherwise, there being an artificial way of providing foreign exchange at fixed rates. 3. SILVER STANDARD wherein SILVER alone is legal tender, other forms of money being convertible into white metal only; and 4. INCONVERTIBLE PAPER MONEY the parity of which is not maintained at all and is dependent upon the local quotation given to the credit of the Govern- ment. 17 18 Modern Foreign Exchange Every country has its own monetary system based on one of the four standards as described. The three metallic standards are monometallic, bimetal- lism having been abandoned everywhere. Some people consider as bimetallic, gold standard coun- tries in which some SILVER coins are given unlimited legal tender power. These countries maintain the parity of such coins by limiting their supply to a certain amount, indispensable for circulation purposes only. This is rather a defect of the system and is called the "Limping stand- ard." Bimetallism does not consist in the legal tender quality given to SOME pieces of SILVER, when GOLD is the standard, but in allowing the free coinage, or the unlunited supply, of such coins. None of the countries under the Gold Standard or the Gold Exchange Standard allow the free and unlimited coinage of silver. The right is reserved to the Govern- ment and the supply is increased only when the needs of the country demand it. In Silver Standard countries gold is not legal tender at any fixed ratio; it is accepted conventionally in reference to the gold price of silver. There are forty-seven systems now in use, of which 21 are based on the Gold Standard, 13 are based on the Gold Exchange Standard, 9 are based on the Silver Standard, and 4 are based on Inconvertible Paper money. Monetary Systems 19 AMERICAN GOLD The GOLD STANDARD is represented by the following units: 1. The EGYPTIAN POUND divided into 100 Piastres of Ten Ochr-el-guerch or milliemes, each of 4 Paras. It is used in Egypt exclusively and contains 7.4375 grammes of fine GOLD. It is equivalent, in American money, to. . . $4 . 94 307 2. The BRITISH POUND STERLING divided into 20 Shillings of 12 pence. It is used in Great Britain and the majority of its colonies. It weighs 7.32238 grammes of fine gold and is equivalent to 4.86 656 3. The PERUVIAN POUND divided into 10 Soles of 100 centavos and used in Peru only. It weighs 7.32238 grammes of fine gold being exactly like the British Pound and is equivalent to 4.86 666 4. The PORTUGUESE ESCUDO divided into 100 centavos in use hi Portugal and the majority of its colonies. It weighs 1.62585 grammes of fine gold being equivalent to 1 .08 052 months. But it was possible to know 53^ months in advance what the rate would be, or 48 Modern Foreign Exchange Finally, the certainty of obtaining actual gold is a factor of immense importance. Theoretically the majority of countries are on a gold basis, that is, their different forms of money are convertible into gold on demand. But in practice gold is only obtainable when conditions of the markets are normal. England claims to be the only coun- try where gold is obtainable always, and still by Act of Parliament the Bank of England has been authorized to suspend specie payments more than once. The Bank of France is permitted to redeem its notes with silver when so desired, and has taken advantage of this privilege more than once. Several European central banks also have raised obstacles hi the way of redeeming their notes hi gold at times. Financial stress does not regularly prevail, but when it exists gold points become merely theoretical. 6 All tables in this book refer to normal times when gold is readily obtainable. From the United States drafts are drawn hi dollars, pounds sterling, francs, marks, lure, and gulden, very seldom are any other gold standard or gold exchange at least the minimum cost (gold point). At present no one can tell what exchange might be after 5^ months as there is no limit to fluctua- tions. Drawing in dollars would be the answer, but this protects the American exporter only, the foreign buyer is at a loss to know how much he may have to pay even in a near future, in his money for exchange on the United States and of course, the fear forces him to restrict his purchases to almost what he cannot help buying. 6 This statement has been confirmed by actual experience since the outbreak of the war, and there is at present no other country except the United States where gold is freely available. Exchange in Foreign Trade 49 standard units used. Such drafts are payable, at sight or at time, usually 60 or 90 days after sight (or date) against shipping papers to be delivered upon acceptance or pay- ment, in local currency at the collecting bank's selling rate for drafts. While London was the center of financial clearings a large portion of our drafts were drawn in pounds sterling payable at the local rate for bills on that market. All drafts drawn hi other than the money of the place of payment should stipulate " payable in local currency at the collecting bank's selling rate for (sight or time) drafts," according to agreement prevailing. Otherwise disputes may arise as to how such drafts are payable. There being no official rates, quotations of different banks may lead to confusion. 7 When selling goods in dollars and drawing in pounds 7 It has been a very undesirable practice to write on the face of some drafts on foreign countries the following words "to be presented on arrival of goods" or to instruct collecting banks to present drafts for acceptance (or payment) on such arrival. When agreeing to those terms with buyers, sellers probably did not realize that by deferring acceptance (or payment) until arrival of goods, they automatically changed the terms of sale from C. I. F. destination or F. O. B. port of shipment to F. 0. B. port of destination, actually guaranteeing arrival. In many cases, also, sellers agreed to allow buyers (or their agents) to examine goods before acceptance (or payment). This subordinated the acceptance (or payment) to the buyer's approval (or caprice). Any drafts subject to conditions more or less uncertain are impaired and treated accordingly. Banks, as a rule, will accept them for col- lection only. 50 Modern Foreign Exchange sterling or other foreign money it is customary to agree with the customer either on a fixed rate of conversion or on one to be fixed by the purchasing bank in the United States. A draft on any place other than London, drawn hi pounds sterling, payable 90 days after acceptance would be rated approximately as follows (considering time dis- tance thirty days one way) : If at sight If at rate 90 days' rate Exchange on London $4.86 $4.80 Discount, 150 days (30 days to go, 90 to run, and 30 to return), at 6% 12J3 12 $4.73^ $4.68 Collection charges 03^ .03 $4.70 $4.65 (These figures refer to pre-war conditions.) They are obsolete and are given only as examples. The difference, between 90 day paper and sight drafts, is based on the prevailing rate of discount in London. In this case the "dollars" would be converted into pounds at $4.70 if payable at the rate of London bills at sight, or $4.65 if payable at the rate of 90 day paper, the drawer receiving the full amount of his invoice against the draft. Interest and other charges would be borne by the drawee, who would pay them in paying more pounds sterling. For instance, a shipment for $4,700 converted at $4.70 would require a draft for 1,000 which the buyer Exchange in Foreign Trade 51 would pay in currency at the collecting bank's rate for sight drafts on London. But $4,700 is not 1,000; at par it is 965.15.6, and when paying 34.4.6 MORE, the cus- tomer is simply covering interest and collecting commis- sion. Interest is about $1 17.50, the balance of $48.50 being the bank's profit. Of course when drafts are drawn "plus interest and other charges " no discount is made at this end. The number of days charged for, when discounting a draft, is usually a trifle more than actually required. The reason for this is the uncertainty regarding the arrival of mails. Drafts acceptable only on arrival of goods which does not always occur simultaneously with the receipt of the correspondence can have no known time for returns. They are difficult to negotiate. No refund is made for fewer days transpired, but, usually a charge is made when allotted time has been exceeded. Profits in exchange stimulate the business of buying drafts and afford the means of developing trade under the most convenient conditions. Shippers receive promptly the value of their invoices and buyers obtain time to pay for them. The nominal commission charged for collecting drafts, alone, would not induce the banks to enter into the transaction. Commercial letters of credit are extensively used in connection with foreign trade, shippers being authorized to draw on American bankers or bankers in other coun- tries, against shipping papers to be delivered, against payment or acceptance of bills. Buyers settle with their bankers for delivery of shipping papers at destination, 52 Modern Foreign Exchange against payment or " trust receipts 7 ' for goods shipped, or other guarantee or without guarantee. Rates of exchange affect trade, especially when dealing with large shipments of grain or other raw materials for which drafts are drawn in foreign money. The American exporter expects to receive American money for his ship- ment, and the better rate of conversion he can secure the better price he can make. In large transactions very small percentages are often decisive and may either secure orders or stand in their way. Sometimes the difference in exchange is the only profit made in a large transaction, and while it may secure such profit only to the foreign customer yet the sale and export of the goods is made. The rate of 'exchange is not so much a factor in the price of manufactured goods as it is in raw materials or semi- manufactured articles. Anyhow, better rates of conver- sion may slightly benefit the buyer and should not be dis- regarded. London is still the largest, if not practically the only, open market for rediscount of drafts for all the world. Therefore, the rate of interest prevailing there influences the rates of exchange everywhere. When the rate in the open market is 4%, drafts on London obtain better prices here than when such rate is higher. A draft for 1,000 at 90 days' sight discounted at 4% (93 days considering the three days of grace which are always counted) obtains 989.16.2, while if- the rate of discount is 6% it would only obtain 984.14.3. A bank in the United States, in Exchange in Foreign Trade 53 making its rates for purchase, would take into considera- tion the difference and would pay about $25 less for the 1,000 in the second case. 8 This and " arbitrage" operating is followed more closely by exchange dealers and speculators than by ex- porters. But these must follow the domestic market for foreign exchange, as the greater efficiency is likely to assist and improve their business. Bankers contract for exchange in advance and it is very convenient to secure a rate before quoting in foreign money for large shipments. As a rule, the most satis- factory results are obtained. A quotation for coal to Brazil payable by a draft drawn to be settled with 90 day paper on London can be made a few cents less per ton if a better rate is secured. If a conversion rate of i$4.70 per 1 for a shipload worth $47,000 is secured, a draft for 10,000 would have to be drawn. If only a rate of $4.65 can be obtained the draft would have to be made for 10,107.10.6. The difference of 107.10.6, slightly over 1%, saved in the first case would either lessen the cost to the buyer, or add to the profit of the shipper, but it might be just enough to secure the order. Protecting the interest of foreign customers is a very 8 The establishment of the Federal Reserve System, granting mem- ber banks the privilege of accepting drafts against actual transactions in domestic or foreign trade, and the facility of rediscounting such acceptances with the Federal Reserve Banks has created discount markets in the principal cities of the United States. 54 Modern Foreign Exchange good policy as it tends to promote better relations and increased trade is the consequence. And it demands very little extra attention from the American exporter. Quoting and selling goods in foreign countries in their money is being adopted as a further convenience to buy- ers. Financing shipments in this form is more attractive to banks and bankers in the United States, since it affords more profits to them. Therefore, there is a natural tend- ency to encourage it. Exchange profits on drafts drawn hi DOLLARS usually, if not always, accrue to foreign banks undertaking the collec- tion. These will earn such profits on converting the DOLLARS into local currency at the time of collection, by charging the payee THEIR RATE for selling drafts. Their provision of funds abroad is made at lower rates when buying drafts on the market. The American bank dis- counting (advancing the money) a draft drawn in dollars on a foreign country, will only earn interest for the tune its money is invested, and sometimes a nominal commission a part of which goes to the foreign collecting bank. But when drafts are drawn in the currency of the place of payment the American bank will make a profit in ex- change and the foreign bank undertaking the collection will earn a small commission for its services as well as exchange profit hi converting proceeds into foreign money. Drafts drawn in other than dollars or the money of the place of payment afford exchange profits for both the discounting (or purchasing) and the collecting bank. It is to the interest of American business people to Exchange in Foreign Trade 55 retain the largest possible portion of exchange profits at home, drawing hi other than dollars. But, of course, this can only be done after agreement with buyers. Although foreign customers may obtain sometimes an advantage on converting into their currency, at the tune of payment, drafts drawn on them hi foreign money, they prefer as a rule to be safe and to contract in their money. There is no extra charge against them when exchange profits are retained in the United States. Nor do they benefit if these are left to the advantage of banks located in then 1 cities. But it certainly is a convenience not to have an uncertain rate of exchange to consider when doing business. Sales can not be made safely hi foreign money, except with countries on a gold basis or with those using a cur- rency so guaranteed as to run practically no risk. Conversion of American money, in this case, is safely done by taking the "minimum" possible rate of exchange from the United States which is the "maximum" from the country to be considered. There is no country at present under the gold standard or the gold exchange standard and gold is not available anywhere. When gold is restored, if it is restored one day, the same system would again govern foreign exchange. Quoting and selling in foreign money is greatly handi- capped because of the uncertainty of exchange rates at this time when the absence of gold points has left fluc- tuations unlimited. Artificial means put in operation to control or limit rates of exchange have succeeded only for 56 Modern Foreign Exchange a time and to a certain extent. They could not be main- tained indefinitely. To sell (or to buy) goods in terms of foreign money, it is necessary at present to negotiate for the exchange beforehand, assuming the conversion of the foreign money into dollars or vice versa at a fixed rate. Many banks hi the United States offer this service at present, and it is a great help to both the foreign and the domestic merchant. BUYING AND SELLING "FUTURES" Buying and selling "futures" (exchange for future de- livery) is done at present, although hi a limited way. Some people consider this a speculation because it is not based on any certain factors, but it is no more than a pro- tection for both, buyers and sellers, covering an uncer- tainty so detrimental to commerce. A manufacturer who buys raw material in advance protects himself against uncertain prices, and becomes able to sell for future delivery, covering his uncertain position. A merchant who buys merchandise in advance protects himself against uncertain prices also, and be- comes able to sell, in turn, for future delivery, covering his uncertain position. An importer buying future exchange to protect himself against uncertain rates becomes able to sell his goods for future delivery, in terms of American money without any risk. An exporter who sells his future exchange protects his buyer who can know exactly what the goods will cost him in his money. In this way goods can be sold in terms of foreign money without any risk to the exporter and to the advantage of the foreign buyer. Exchange in Foreign Trade 57 The same can be done, and is done in foreign countries where buyers can secure from their banks foreign exchange for future delivery at fixed rates, covering themselves against fluctuations. None of these can be considered as speculators. On the contrary, they would be helping to stabilize rates, and unconsciously assisting to restore normality to trade. Europe is not bankrupt in spite of the heavy load its people have to carry for wastage of the War. So long as the land exists, that it can produce and that its people work, there will always be trade for all. If exchanges were stabilized, even if only within reasonable fluctuations, many of its industries would add to the production by the converting of raw material which must be purchased abroad. Time to recover is needed more than actual new foreign capital. Economic readjustment can not be made overnight, and if the people will work patiently and with confidence in their own future many years will not have to transpire before the world will be on its feet again, produc- ing and consuming more than before the War. The uncertainty of exchange rates is doing more harm than is apparent. It is discouraging trade and work, and is delaying the period of real recovery. Anything that may be done to prevent violent fluctuations will be of great assistance. Buying and selling " futures" is a remedy, even if only temporary. By pushing ahead for a few months and stabilizing rates of exchange for that short period, much will be gained with loss to nobody. During each succeed- ing period of a few months Europe will recover a little more, and what may seem a temporary relief may be turned later into a permanent measure towards definite stability. ARBITRAGE Arbitrage is the simultaneous negotiation of exchange between three or more different money markets. International trade and financial transactions cause movements in exchange which do not follow, as a rule, the same course in all markets at a given moment. These movements afford opportunity for earning profits in the transfer of money from some places to others. This is done by cable and by drafts, with the object of taking advantage of the differential rates in the various markets. For instance, New York bankers will draw on London and cover by remittance on Berlin, ordering the transfer of funds from this city to London direct or through Paris, Antwerp, Amsterdam, or another market where exchange could be bought at a profit. Fluctuations occur through rise and fall of interest rates in one or more of the money markets, used in these transactions. However, the profit arising from differential rates is reduced to such a small percentage that it is negligible to those not carrying on a very large business in this line. One pound sterling is equivalent at par to $4.86656 American money, and to Francs 25.22154, and the Franc in New York is worth $0.19295, at par also. Fluctuation limits between England, France, and the United States 58 Arbitrage 59 were very close to their "gold points"; but the supply of, and the demand for exchange, as well as the interest rates were not always the same in the three countries, and the same proportional rating was not always maintained. If a New York banker sells a sight draft on London for 1,000 at $4.60 he will obtain $4,600, and if he invests this amount in Paris exchange at $0.16 per franc he will secure a draft for francs 28,750. Should he instruct his Paris correspondent to buy with this amount exchange on London and this is done at the rate of Fes. 30 per pound sterling a remittance of 1,010.10.10 would be made to the London correspondent of the New York banker, closing the transaction with a profit of only 10.10.10 or $48.49. This profit is apparently very small, but as these transac- tions are done several times a day, and involve many hundreds of thousands of pounds, they become, in the end, a source of large profits to bankers engaged in this class of business. The figures mentioned are set forth merely as an exam- ple, and do not refer to any given case. Usually margins of profit are very much smaller than the one quoted. Arbitrage is transacted through cable transfers as well as through commercial and financial bills, or against recip- rocal credits. In fact, hi one sense it is frequently em- ployed for the purpose of international "kiting" on a large scale, and is carried on as much for trade conven- iences, as for credit operating and speculation. Merchants and exporters very seldom depart from their own lines hi this regard. When they wish to remit 60 Modern Foreign Exchange to Paris they buy a draft on Paris, without looking for an advantage in exchange going via London or another market. And when they have a draft on London to sell they sell it outright in New York (or at their place of business) without seeking to make a profit by sending it to Hamburg or another place to convert into American money or to have a balance to draw against. When they do so they become temporarily bankers and assume the inherent risks. Exporters who dispose of drafts and take their bank's rate without further investigation, and importers buying exchange at rates fixed by their bankers, afford abundant material for this business. The individual transactions of each are not worth, as a rule, any more trouble, but taken in the aggregate they represent huge amounts and provide for a good part of bankers' and exchange dealers' earnings in this line. Arbitrage profits are kept down by natural competition, they are perfectly legitimate, and are honestly earned. Against them the banks and bankers offer the inestimable service of credit extended to almost every merchant of good repute, when buying their drafts protected or not by shipping papers. Securities are used to a certain extent in the arbitrage of exchange yielding profit not only on exchange rates but also in the matter of price as quoted in the different markets. But this would rather come under " stock arbitrage" than within money exchange transactions. Table of Moneys in Actual Use 61 II S h 55 S W S a TO CT . ll Q O I o o o o o o 88888 8 .5 MI 3 . *3 g.?-0 123-S O ^ -P $3 > v S 'C o g '- I *a w n ti -S w o S -g QJ fi 02 ^ P 5| 02 ^ 3 II < OQ OD OQ QQ OQ O 62 Modern Foreign Exchange CO CO h u, * 388888818888883388888 Jj dddddddddddddddddddddd "8 ; \si ^ is i * & 0X2 O *-' S " " ' '^ " ~ 6 i d 43 P t^ CO O fe !!!!'.!!'.!'. ! ! ! ! 1 ^ ^/T {^ I I '02' 'OT V 'oo' / QQ S X 02 N 'o? 'o? '^ O2O20202QQ0202__Q s o^ / ^co^ ^02^ ^02^ oppoppppooooooo...ooo^ I I I I II I I | I j I | | | I I I | I I I BSfltiflc]fi3ddtidddc3c]9cididc|c3 O0^CJOOQ^Q^OQ^OQ^Q^OO^Q^OQ^OO o^ 8: 8^ O Q Q i-HCIOOi-HOOOOOoOO SB , Q) 0) 03 J.i sss ^ :'S * c i o 53 'C 9 SS^ fi fe PH P&4 fe S "W oww 64 Modern Foreign Exchange B I H i s * : 5 OQ B M ' " ^ ^ -3. A - - II a fl S ~ 88 ifl jql 111 Table of Moneys in Actual Use 65 IH ^ oc38c2 Si o d> K ^ >l > > S PH?3g^ ^^-^Jj|jJ O^*HO -i3a}o |||l .8iS88888SS85 B |g * 8 : i . - S ^ :::::: : : s-j 12 slM ! : i :m I M lililll-illlilllillllj! _ s - - - < " ' flV ^ 5> ^* 'Z? . - o3 ^ J^ Vl fl* v5, 3 fl Q. g & 66 Modern Foreign Exchange CO CO *O 1 s - Oi COt^CNOQ^fdOOOiCD Tfl Tt* "H M S "^ '^ GO ^P ^D CO Tt* O5 ^D ^5 ^5 CQ o O 3 :'*::': :^ - s ll -: .^ : II .s : 3 : ; . w rS ^>T~) . T^fli.-^c^bD f _,o_ l c3'-ii_i * _i 3 g I 'I -2 .2 d - * j*--a- ; H e Bfl 8-B J^ B-l t q i T : : : : ; : : H ff I 1 '-S SI'S ' J :Bl S3vSl-02 WHggg -^ 'S^'S 1 iii? 3 i iiffii.li ii .2 .2 .2 .2 .2 o oo 55 S S .S .9 o 3 s s PH PH P_i PH P-i P-i ||{3kffiMMMMffiM P^Pn Table of Moneys in Actual Use 67 LUE IN . MONEY CO CO N ^ * o S -^ t * * C^ ^^ t^* * 00 l> - 1 - Tf t^ t> a O O O O O O DIVISION II >Cents /lOOof Lev 00 Centavos .... OOBese T. fj J r^ " PQ O 02 888 00 Sen.. ! 00 Cents.. ; . . . . ! ; B P . . . . : : o> . . . . ; *^ ; i CD T3 ; o \ j a IB 3 t-3 Qu 3 * 1111 f-rii W <5 Eritrea. . Northeast Siam .... II . . . . o . . f* Jz ' IH * 02 02* JS 65 3 s g 02 02 02 H si 1- 3 ^ g 3SP | 68 Modern Foreign Exchange NAMES OF SOME COINS, USED AT TIMES IN BUSINESS Alexander Bulgaria 20 Leva $3 . 85900 Alfonsino Spain 25 Pesetas 4.82375 Centen Cuba 25 Pesetas 4.82375 Condor Ecuador 10 Sucres 4 . 86656 Coroa Portugal 10 Milreis 10 . 80460 Crown United Kingdom ... 5 Shillings 1 .21666 Ducat Netherlands 5.70 Gulden 2.28267 Ducat Austria 11.29 Kronen 2.28792 Eagle United States 10 Dollars 10. Farthing United Kingdom ... ^ Penny 0.00507 Florin United Kingdom ... 2 Shillings 0.48666 Half-Crown. . .United Kingdom. .. 2 Shillings and 6 Pence .. 0.60833 Imperial Russia 15 Roubles 7.71839 Krone Germany 10 Marks 2.38209 Louis France 20 Francs 3.85900 Luis Cuba 20 Francs 3.85900 Medjidie Turkey 20 Piastres 0.86928 Napoleon France 20 Francs 3.85900 Soldo (i) Italy 5 Centesimi 0.00964 Sou (s) France 5 Centimes 0.00964 Sovereign United Kingdom ... 1 Pound Sterling 4.86656 Tcherek Turkey 5 Piastres 0.21732 NAMES OF SOME QUANTITIES OF MONEY REFERRED TO IN TRADE Conto . . .Portugal 1000 Escudos $1080.46 Conto . . . Brazil 1000 Milreis (gold) 546 . 15 Conto . . . Brazil 1000 Milreis (paper) 324 . 44 Crore .... India 100 Lacs (10,000,000 Rp.) . 3,244,373 . 33 Guinea. . .United Kingdom 21 Shillings 5.11 Lac India 100,000 Rupees 32,443.73 Value of the Gramme of Gold 69 VALUE OF THE GRAMME OF GOLD According to the intrinsic GOLD value of the UNITS in countries using the GOLD or the GOLD EXCHANGE Standards the GRAMME of GOLD (fine) is worth as follows: GOLD STANDARD COUNTRIES: Egypt . .0.134453 of E. 1 or E. 0.13.4. 4 " Great Britain . . . 136567 of 1 or 0.2.8 1 Peru . .0.136567 of p. 1 or p. 0.1.36 567 Portugal .. 0.615116 of E. lorE. 0.61 6118 Uruguay .. 0.642611 of $ lor$ 0.64 2811 Newfoundland .. 0.655518 of $ lor$ 0.65 5518 United States, etc .. 0.664603 of $ lor$ 0.66 4603 Colombia . . . 682838 of $ 1 or $ . 68 2838 Russia .. 1.291606 of Rb. 1 or Rb, 1.29 1608 Salvador .. 1.329080 of C/ lorj 1.32 9082 Japan . . 1 . 333333 of Y. 1 or Y. 1 . 33 3333 Ecuador . . 1 . 365676 of S/. 1 or S/. 1 . 36 M7 Costa Rica . . 1 . 428163 of C. 1 or C. 1 . 42 8163 Netherlands . . 1 . 653439 of G. 1 or G. 1 . 65 3439 Bolivia . . 1 . 707095 of B. 1 or B. 1 . 70 7095 Scandinavian States . . . . . 2 . 479974 of K. or Kr. 2 . 47 9479 Germany .. 2. 790000 of M. orM. 2.79 Austria-Hungary .. 3. 279979 of K. or Kr. 3.27 9979 Montenegro . . 3 . 279979 of P. or P. 3 . 27 9979 Latin Union ..3. 444444 of Fr. or Fr. 3.44 4444 Turkey 15. 117158 P. or P. 15 A GOLD EXCHANGE STANDARD COUNTRIES: Panama . . . 664603 of B. 1 or B. . 66 4603 Nicaragua .. 0.664603 of C/. 1 or C/. 0.66 4603 Straits Settlements .... .. 1.170576 of $ lor$ 1.17 0678 Philippines . . 1 . 329206 of P. 1 or P. 1 . 32 92oa Mexico . . 1.333333 of $ lor$ 1.33 3333 Argentina . . 1.565670 of $c/l lor$c/l 1.56 M7 Siam .. .1.792114 of T. lorT. 1.79 2114 India ..2. 048508 of Rp. 1 or Rp. 2.0.3 Ceylon ..2. 048508 of Rp. 1 or Rp. 2.04 8M8 Brazil ..2. 048508 of l$or 2$048 508 British East Africa and Zanzibar ..2. 048508 of Rp. 1 or Rp. 2.04 8608 Italian Somaliland ..2. 048508 of Rp. 1 or Rp. 2.04 8608 German East Africa . . . ..2. 092500 of Rp. 1 or Rp. 2.09 2MO 70 Modern Foreign Exchange COINING VALUE OF THE OUNCE OF GOLD 1000/000 FINE Gold Standard Countries PAR VALUE OF THE AMERICAN DOLLAR Gold Standard Countries Egypt . E. 4 . 18 . 2 030 Great Britain . 4. 4. II 466 Peru .p. 4.2.47 292 Portugal .E. 19. 12 827 Uruguay .$ 19. 98 739 Newfoundland .$ 20. 38 904 UNITED STATES. . . .$ 20. 67 188 Colombia .$ 21. 23 646 Russia .R/ 40. 17 386 Salvador .C/ 41. 33 971 Japan .Y. 41. 47 133 Ecuador .S/ 42. 47 292 Costa Rica .C. 44. 42 108 Netherlands .G. 51. 42 848 Bolivia .B. 53. 09 724 Scandinavia .K. 77. 13 652 Germany .M. 86. 77 875 Austria-Hungary . . .K. 102. Ol 941 Montenegro .P. 102. Ol 941 Latin Union .F. 107. 13 424 Turkey .P. 470. 8 161 Egypt E. Great Britain . Peru p. Portugal E. Uruguay . . . . -. $ Newfoundland $ Colombia $ Russia R. Salvador C/ Japan Y. Ecuador S/ Costa Rica C. Netherlands G. Bolivia B. Scandinavia K. Germany M. Austria-Hungary. . . K. Montenegro P. Latin Union . . F. Turkey P. 0.20.2 30 <> 0.4. 1 316 0.2.05 484 . 92 552 0.96 689 0.98 632 .94 341 .00 .00 19 2.05 484 2.14887 2.48783 2.56 855 3.73 148 4 19793 4.93 519 4.93 519 5.18 282 22.29 s36 Gold Exchange Standard Countries Gold Exchange Standard Countries Panama B. 20. 67 183 Nicaragua C. 20. 67 183 Straits Settlements .$ 36. 40 929 Philippines P/ 41. 34 368 Mexico $ 41. 47 133 Argentina $cA 48. 69 738 Siam T. 55. 74 180 Brazil 63S715 95 Ceylon R/ 63. 71 595 India R/ 63.11.2 British East Africa, Zanzibar R/ 63. 71 695 Italian Somaliland. . R/ 63 . 71 696 East Africa (ex-German) R/ 65 . 08 406 Panama $ 1 . Nicaragua $ 1 . Straits Settlements . $ 1 . 76 130 Philippines P/ 2.00 Mexico $ 2.00 619 Argentina $c/l 2 . 35 576 Siam T. 2.69 651 Brazil 3$082 2 Ceylon R/ 3.08 226 India R/ 3.1.1 British East Africa, Zanzibar R/ 3.08 226 Italian Somaliland.R/ 3.08 226 East Africa (ex-German) R/ 3.14 851 Time Distances 71 COINING VALUE OF THE OUNCE OF SILVER 1000/000 FINE IN SILVER STANDARD COUNTRIES China (Yuan) Y. 1.28 684 French Indo-China P. 1.28 002 Hongkong $ 1.28 210 Abyssinia T. 1 .S2 683 Honduras $ 1 .38 239 Morocco R. 1.38 239 Italian Eritrea T. 1.38 239 Afghanistan R/ 2.90 91 * (R. 2.14.2) Persia K/ 7.50 630 (K. 7.10.5) TIME DISTANCES (FROM NEW YORK) Time usually considered in the purchase of sight drafts, as necessary to receive remittance. For time drafts add days to run. When dealing with drafts acceptable after arrival of goods more time is considered. Time distance is not considered on drafts drawn payable at certain time after date. SOUTH AMERICA Argentina: DAYS Buenos Aires 60 Bahia Blanca 63 Cordoba 66 Mendoza 66 Rosario 63 Santa Fe 66 Santiago del Estero 66 Bolivia: Cochabamba 80 LaPaz , 75 Oruro 80 Potosi 80 Sucre 80 Brazil: Bahia 45 Manaos. . 45 Brazil Cani'd DATS Para 36 Pernambuco 36 Rio de Janeiro 48 Sao Paulo 60 Chile: Antof agasta 66 Arica 60 Caldera 72 Coquimbo 72 Iquique 60 Santiago 66 Valdivia 75 Valparaiso 66 Colombia: Barranquilla 30 Bogota 66 72 Modern Foreign Exchange Columbia Cont'd DAYS Buenaventura 36 Call 45 Cartagena 30 Manizales 48 Medellin 45 Popayan 48 Santa Marta 30 Tumaco 36 Ecuador: Bahia 48 Cuenca 48 Esmeraldas 54 Guayaquil 40 Manta 48 Riobamba 48 Quito 48 Paraguay: Asuncion . 66 Peru: DAYS Arequipa 60 Callao 48 Lima 48 Mollendo 54 Paita 36 Trujillo 48 Uruguay: Montevideo 60 Paysandu 66 Venezuela: Caracas 21 Ciudad Bolivar 30 La Guaira 18 Maracaibo 30 Puerto Cabello . . .30 CENTRAL AMERICA Costa Rica: DAYS Puerto Limon 18 Puntarenas 30 San Jose 24 Guatemala: Champerico 27 Guatemala 18 Livingston 21 Ocos 30 Puerto Barrios. 15 Quezaltenango 24 San Jose 24 Honduras: Amapala 36 Pedro Sula 24 Puerto Cortes 18 Tegucigalpa 45 DAYS Nicaragua: Bluefields 18 Corinto 30 Granada 36 Greytown 21 Leon 36 Managua 36 Panama: Colon 18 Panama 21 Salvador: Acajutla 45 Santa Ana 54 San Salvador 48 Santa Tecla. . 54 Time Distances 73 NORTH AMERICA Canada: DAYS Montreal 6 Ottawa 6 Quebec 6 Toronto 6 Vancouver 18 Victoria 18 Winnipeg 12 Newfoundland: St. John. . 15 Mexico: DAYS Guaymas 18 Mexico City 18 Monterey 18 Progreso 24 Puebla 24 Tampico 18 Veracruz. . . 21 WEST INDIES Bahamas: Nassau DAYS . 15 Barbados: Bridgetown 24 Bermuda: Hamilton.. 8 British Guiana: Georgetown . 30 British Honduras: Belize 18 Cuba: Cardenas 18 Cienf uegos 18 Havana 12 Matanzas 18 Sagua la Grande 18 Santiago 15 Curacoa: Wilhemstad Dominica: Roseau .... 24 24 Dominican Republic: DAYS Azua 24 Barahona 24 Montecristi 24 Puerto Plata 18 Samana 21 Sanchez 21 Santo Domingo 18 Dutch Guiana: Paramaribo 30 French Guiana: Cayenne 36 Grenada: St. George 24 Guadeloupe: Basse-Terre , 24 Haiti: CapeHaitien 18 Gonaives 18 Jacmal 18 Jeremie 18 Miragoane 21 74 Modern Foreign Exchange Haiti Cont'd DAYS Petit Goave 18 Port au Prince 18 PortdePaix 18 Jamaica: Kingston 18 Martinique: Fort de France 24 Porto Rico: Aguadilla 21 Arecibo.. . 21 DAYS Mayaguez 21 Ponce 18 San Juan .15 St. Lucia: Castries . 24 Virgin Islands: St. Thomas 18 Trinidad: Port of Spain 21 ASIA Arabia: DAYS Aden 45 Jeddah 45 Mascat. . . 45 Ceylon: Colombo. 54 China: Canton 66 Hongkong 60 Peking 66 Shanghai 60 Dutch East Indies: Batavia 75 Samarang 81 Soerabaya 81 India (British): Bombay 54 Calcutta. 60 Karachi 54 Madras 54 Rangoon 66 Indo-China: Haiphong . 75 DAYS Hue 75 Saigon 75 Tonkin 75 Japan: Kobe 60 Nagasaki 60 Osaka 60 Tokyo 54 Yokohama 54 Persia: Bunder-Abbas 75 Bushire 75 Teheran 90 Philippines: Manila 66 Hollo 75 Siam: Bangkok 81 Siberia: Vladivostock. . . 60 Time Distances 75 Straits Settlements: DAYS Penang 75 Selangor 81 Singapore 66 Turkey: DAYS Bagdad 60 Smyrna 54 Jaffa.. . 54 OCEANIA Australia: DAYS Adelaide 66 Brisbane 66 Fremantle 75 Hobart 80 Melbourne 66 Perth 80 Sydney 66 Hawaii: DAYS Honolulu . 50 New Zealand: Auckland 54 Wellington 54 EUROPE Austria: Vienna , DAYS . 24 Belgium: Antwerp 24 Brussels 24 Bulgaria: Sofia 60 Varna. . . 60 Checzo-Slovakia : Prague Denmark: Copenhagen . 24 30 Finland: Abo 30 Helsingfors 30 France: Bordeaux 24 Havre 24 Cherbourg 18 Lyon 24 Marseille. . . 30 DAYS Paris 20 Tours 30 Germany: Berlin 24 Bremen 20 Dresden 24 Hamburg 20 Munich 24 Nuremberg 24 Stuttgart 24 Greece: Athens 36 Canea (Crete) 40 Hungary: Budapest . 24 Italy: Brindisi 24 Florence 24 Genoa 24 Milan 24 Naples 24 76 Modern Foreign Exchange Italy Cont'd DAYS Rome 24 Trieste 24 Turin , 24 Jugo-Slavia: Fiume 24 Belgrade 60 Malta: Valetta. 30 Netherlands: Amsterdam 24 Hague 24 Rotterdam 24 Norway: Bergen 24 Christiania 24 Stavanger 24 Poland: Warsaw, 36 Portugal: Lisbon 30 Oporto 30 Rumania: Bucharest 60 Bourgas 60 Galatz 60 Constance 60 Russia: Moscow 30 Riga 30 Petrograd 30 Spain: DAYS Barcelona ................ 30 Cadiz ................... 30 Granada ................. 30 Madrid .................. 30 Malaga .................. 33 Santander ............... 30 Sweden: Gottenburg .............. 30 Malmo .................. 30 Stockholm ............... 30 Switzerland: Basel .................... 24 Bern .................... 24 Geneva .................. 24 Interlaken ............... 30 Lucerne ................. 24 Zurich ................... 24 Turkey: Constantinople ........... 36 Ukraine: Odessa. 36 United Kingdom: Belfast 20 Birmingham 18 Cork 18 Dublin 18 Edinburgh 20 Glasgow 20 Leeds 20 Liverpool 18 London 20 Manchester 18 Southampton 18 Time Distances 77 AFRICA Algeria: Algiers . DAYS . 30 Angola: Loanda 75 Belgian Kongo: Boma. . . 60 British East Africa: Mombasa. . 60 Egypt: Alexandria ............... 36 Cairo .................... 36 Khartum ................ 48 Port Sudan .............. 42 Suez ................... 33 French West Africa: Bassam ........ .......... 72 Senegal ................. 54 French Somali: Djibouti Gambia. Bathurst 72 54 East Africa (formerly German). Dar-Es-Salaam ........... 72 Gold Coast: Akkra ................... 54 Kamerun: Victoria ................. 75 Liberia: Monrovia. . . 72 Madagascar: DAYS Tamatave 66 Tananarive . . .66 Mauritius: Port Louis . 120 Morocco: Casablanca 36 Fez 30 Tangier 24 Nigeria: Lagos 60 Old Calabar 60 Portuguese East Africa: Lourenco Marques 72 Mozambique 80 Seychelles: Mahe. . Sierra Leone: Freetown. , 60 54 Southwest Africa: Luderitzbucht 72 Swakopmund 72 Union of South Africa: Bloemf ontein 66 Cape Town 60 Durban 66 Johannesburg 66 Port Elizabeth 66 Pretoria. . . 66 Zanzibar Prot.: Zanzibar. . 72 78 1 s I I .a I SI a 3 s M O i s 3 05 P a| o K g O Modern Foreign Exchange S 1 1 1 8 8 3 I 8 1 1 8 I 8 I i-HOOOTHi-II>OrHrHO-O'-H' lOi I O -H O 1 . . ^ ; j J : J | _2 *^ OT r II go II (22 11 II 8. a ^^ Q} II II .a ^ u I g- I ft 1-8 s i 1* $ Monetary Units Intrinsic Equivalents . t 9 9 O 5 g - O 2 CO Q T-H 1-1 O> 05 838 CO r}H CO 8S8 OOOOOOOi-HO b^.a^S^is^ tfc3PwpHPH 3 1 .1 1 g .si 'i * 8 gs lfr|1 _N ^4 So S "S s S a) Monetary Units Intrinsic Equivalents * g H I H i c T^cocOCOCOCOCOiOTliTH OOOOOOOOOOi-tHOO QQ ^^ ^Q r^ QQ t > -t > -f>t>-t > '-H dddddddddd II 00 ill s Mil 1 " 1 s o o 9 B a E Jg O oj oj eg 53 Q Q H W fe fe J s c -P ' - iiiiii-H-g- 3 c -c -c - ^ d -d -d 100 Modem Foreign Exchange o 8 & I 4r 8 * ? W & 8 TS fc .13 3 J5 S 3Tf

. ^n illiS* l> C5 t>. ^1 ^ ^ OOOOO(NCOCOOO OH PH PH PH PH PH PU 104 Modern Foreign Exchange (Smaller coins contain, as a rule, less quantity of fine silver per unit.) As a matter of information in the following Table, are described the Subsidiary Silver coins of countries other than Silver Standard, mentioning the price of silver at which they would be worth intrinsically the same as their representative value. 6 I H ^ i 1 3 s 2 g Subsidiary Silver and Gold } < t > O>CP'3'l'COCQTt -'3<'VH poscot>-y?cpooi N -'-in 5QcocO'*'*cocoT* II! 105 S 3 8 S S 3 S 5 CO C^ CO ^< O . i-H CO H t> H H I i I 2 S t>. OS lO T*< C^ CO I s * Oi t^* CO ^^ O^ l** C^ O^ *O ^H T-M l> O5 t N * t^ot^^coot^t^ TH25r-lt>.C^>O-llO . 3 ^ li S .* ,2 ^3 o3 IIII11J31 106 I 9 Modern Foreign Exchange Tt>.cO-l>-COC^.CQoodicoi>coc OO CO Oi CO rH 00 CO r- 1 l> Q CO CO CO O !> iO O l> (N O rH O CO rH rH^OCOrHTtlt^.OOOO Jt>. 10 10 ^Iliil ^^ 2 2^ S 53oQffoQ &2 oo II f i di mill Subsidiary Silver and Gold S Q S3 H W ^ ! h M O t^ t^- CO *O i I O5 O < 4 8 o C b *d i^^ -Segg-^^^ .>.>: 1 .8 i 2 J 9 9 I ^ 'a S| ! IJ I tl si 107 108 Modern Foreign Exchange ills 91 a r* "-* C !rl *ri * O CO